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        Companies Law

        2017 (12) TMI 1778 - HC - Companies Law

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        Interim delivery arrangement for metro rails protects transport, storage and rival claims pending final adjudication. An interim workable arrangement was fashioned for delivery, custody, transportation and storage of metro rails pending final adjudication of the suits. To ...
                        Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
                          Provisions expressly mentioned in the judgment/order text.

                              Interim delivery arrangement for metro rails protects transport, storage and rival claims pending final adjudication.

                              An interim workable arrangement was fashioned for delivery, custody, transportation and storage of metro rails pending final adjudication of the suits. To avoid delay in a project of national importance, the Court directed phased release of specified rails, prior intimation of transport details, cooperation in handing over, and compliance with applicable law. It also permitted recovery of storage charges during delivery, required indemnity for damage, fixed a deadline for delivery to the project site, and restrained disbursal or encashment of the claimed amount in the connected suit until further orders, preserving the rival monetary claims.




                              Issues: (i) Whether an interim workable arrangement should be made for delivery, custody, transportation and storage of the metro rails pending final adjudication of the suits, and ancillary directions issued regarding storage charges, indemnity, cooperation and withholding of payment.

                              Analysis: The dispute concerned urgent delivery of metro rails required for a project of national importance. As the rival claims between the parties remained pending and no final adjudication was being made, the Court fashioned only a temporary arrangement to prevent delay in delivery. The order directed the defendant in possession of the rails to release specified quantities, required prior intimation of transport details, permitted recovery of storage charges during phased delivery, required cooperation in handing over the rails, cast an obligation on the plaintiff to comply with applicable law and indemnify for damage, fixed a deadline for delivery to the project site, and protected the amount claimed in the connected suit by restraining disbursal or encashment pending further orders.

                              Conclusion: An interim arrangement was directed in favour of neither side on the merits, with operative directions for release and transport of the rails and preservation of the rival monetary claims until further hearing.


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